When it comes to benefits and welfare, it is important to understand how much money you can make before it affects your Centrelink payments. In this article, we will look at the impact of earnings on Centrelink benefits, and how much you can earn before it has an effect on your payments.
How Much is Too Much?
The amount you can earn before it affects your Centrelink payments is known as the income-free threshold. This is the amount you can earn before your payment is reduced by 50 cents for every dollar you earn. The income-free threshold is currently set at $437 per fortnight. This means that if you earn more than $437 per fortnight, your payment will be reduced.
The Impact of Earnings on Centrelink Benefits
The amount of money you can earn before it affects your Centrelink benefits is dependent on a number of factors. These include:
- Your age: The income-free threshold is higher for people over the age of 21.
- Your family situation: If you are a single parent or have a partner, the income-free threshold is higher.
- Whether you are studying: If you are studying and receiving an approved Centrelink payment, you can earn up to $500 per fortnight before your payment is affected.
It is important to note that any income you earn may also affect any other benefits you receive, such as rent assistance or energy supplements.
It is important to understand how much money you can earn before it affects your Centrelink payments. The income-free threshold is currently set at $437 per fortnight, but this may be higher depending on your age, family situation, and whether you are studying. It is important to be aware of how much money you are earning, as it may have an impact on other benefits you are receiving.
If you are on Centrelink benefits, it is important to know how much money you can make without affecting your Centrelink payments. Although the amount of money you can earn before your Centrelink payments are affected may vary depending on your circumstances, there is a set limit that applies to all.
In most cases, fortnightly earnings of up to $433 are not taken into account when calculating your Centrelink payments. This is known as the income-free threshold and is the first amount of money you can make without it affecting your Centrelink payments. This amount is fixed and is not adjusted for inflation.
On top of the income-free threshold, all types of earnings will be disregarded up to a fortnightly limit, which is currently set at $437. This disregard is adjusted each year in line with the Consumer Price Index. This means that the maximum amount of allowable earnings for the current financial year is $870.
Any amount of earnings over the limit will be counted as income when calculating Centrelink payments. This means that Centrelink will discount your payment as you earn more. The discount rate is known as the taper rate. This rate is 50 cents for every dollar earned, up to a maximum of $76.50 per week.
It is also important to note that certain types of income will not be counted towards this limit. For example, any government payments such as Family Tax Benefit and Pensioner Concession Cards are not counted as income.
Additionally, any income you receive from investments or assets, such as shares, superannuation and interest earned on savings will also be disregarded.
Finally, there are also exclusions and reductions that may apply to certain people, such as carers and students, which will reduce their income disregards and taper rates.
It is important to remember that being on Centrelink benefits does not mean you are unable to work or obtain additional income. Knowing your limits for allowable earnings before your Centrelink payments are affected is key to making the most of your Centrelink payments.